Vodafone and O2 tipped as BSkyB merger targets

2 comments
Vodafone and O2 tipped as BSkyB merger targets

BSkyB could merge with either Vodafone or O2 this year, according to analysts at UBS.

Analyst Polo Tang said, in a UBS briefing note this week, that BSkyB could be looking to make a move this year, which could involve merging with the UK arms of either Vodafone or Telefonica.

He said that ‘the move to quad-play across Europe could also see BSkyB merge with either Vodafone UK or O2 UK. Such a deal could generate significant cost and revenue synergies that could be worth 248-264p per share. Alternatively, Sky Europe (a subsidiary of BSkyB could merge with either Vodafone or Telefonica to produce a European quad-play operator.’

UBS moved its rating from neutral to buy and its price target from 880p to 1100p, saying the outlook was positive.

2 Comments

vodafone own cable and wireless so it would be interesting to what happens
they will tell everyone (that isnt an employee)e.g customers, papers and unions 1st and then they will tell the employees at the very last minute as t ...



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